On Mar 20, Zacks Investment Research upgraded Louisiana-based
independent oil and gas explorer Stone Energy
Corp. ( SGY
) to a Zacks Rank #1 (Strong Buy).CONTL RESOURCES (CLR): Free Stock Analysis
ReportCRIMSON EXPLOR (CXPO): Free Stock Analysis
ReportPLAINS EXPL&PRD (PXP): Free Stock Analysis
ReportSTONE ENERGY CP (SGY): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
Why the Upgrade?
Stone Energy has been witnessing rising earnings estimates owing
to better-than-expected fourth-quarter 2012 results on the back of
enhanced production. The company declared impressive results on Feb
25, 2013, with earnings of 92 cents per share surpassing the Zacks
Consensus Estimate of 55 cents by 67.27%.
Stone Energy's total operating revenue increased 14% year over
year to $254.9 million from $223.6 million and beat the Zacks
Consensus Estimate of $240.0 million.
For the first quarter of 2013, most of the estimates (3 out of 4)
were revised upward over the last 30 days, raising the Zacks
Consensus Estimate by 24.53% to 66 cents per share. The Zacks
Consensus Estimate also went up 12.81% to $2.29 per share for 2013
during the same time span.
Based on its track record of achieving sustained volume growth,
Stone Energy guided its net daily production at 230−240 million
cubic feet of gas equivalent per day (MMcfe/d) for the ongoing
quarter. For full-year 2013, the company anticipates total volume
in the range of 240-255 MMcfe/d.
Stone Energy is well placed in the industry with a widespread and
high-yielding inventory. The company boasts an extensive capital
project inventory and is generating surplus cash flow with no bank
debt. Although Stone Energy aims to apportion its capital across
its portfolio, the focus will be on the Gulf of Mexico shelf as
well as the Marcellus region.
Other Stocks to Consider
There are other exploration and production firms that are also
performing well and are worth considering. These include
Continental Resources Inc. ( CLR ), Crimson
Exploration Inc. ( CXPO ) and
Plains Exploration & Production Company ( PXP ). All these firms
carry a Zacks Rank #2 (Buy).